Tax season is a burden. Small businesses that do not prepare for the April 15 due date are sometimes caught off guard by high tax payments. A CPA in Yorktown, such as Carmines Robbins and Company PLC, recommends the implementation of the tax extension. 2014 may have been a tough year, and small businesses may make some sacrifices to fit that April 15 deadline. Yet, businesses can apply for a fair extension to bring a due date out to the end of the year.
Decisions Decisions
The bald truth is a some people are not prepared with the paperwork. There are a lot of decisions that go into a tax return. Is a taxpayer filing a depreciation or simply writing it off as an expense? Are they carrying over losses from the previous year or omitting those entirely? These changes, though seemingly small, can have an impact. Individuals not quite prepared in this regard could work with a CPA in Yorktown to receive an extension.
Costs
It costs the most to file taxes between January 1 and March 1. There is typically another industry spike in the back half of March and all of April. There are obvious business-related reasons for this. An extension will push an individual to the back half of the year. Traditionally, the cost of filing taxes are cheapest in the fall and winter. Many tax offices downsize substantially, and others are looking for new tax related work. This is not to say that the rates during tax season are unfair. It is only a natural reaction to increased supply and demand. An extension would reduce tax filing costs.
An extension is not the answer for everyone. There a lot of underlying factors. For example, certain individuals will not qualify for a tax extension at all. These are typically businesses making a certain net profit yearly. Penalties can be waived, but the amount is still due. For example, an individual is responsible to pay that amount by the April 15 due date. Speak with a local professional to know the exact course to take as the next tax season comes up.